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Brooks Back In Trouble

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Published: January 17, 2010 12:55 pm ET

Last Comment: January 24, 2010 3:01 pm ET | 17 Comment(s) | Jump to Comments

David Brooks, who raced under the name Perfect World Enterprises, has reportedly had his bail revoked and remanded back to prison after federal officials alleged he had concealed millions of dollars in assets overseas. David Brooks is scheduled to go to trial later this month on charges that he looted his body-armor company in 2007.

Brooks had been allowed to live in his condo in Manhattan as he awaited trial, but a condition was that he and his family, including his brother Jeffrey, would account for their assets and keep them in monitored accounts in the U.S. One of the alleged schemes was uncovered by police in London who were conducting a separate money-laundering investigation. An undercover video showed Jeffrey Brooks removing duffel bags from a safe-deposit box at a London bank. The next day, a person allegedly working for the Brooks brothers rented another safe-deposit box, and when police opened the box it contained more than $3.6 million in pounds, euros and U.S. currency in envelopes marked "Jeffrey Brooks Securities."

In a story reported by newsday.com, an affidavit filed Friday, Jan. 15, alleged Brooks did not report assets in a scheme he named "Czerny Kot," which is Polish for black cat. The affidavit stated Brooks had set up shell companies overseas that hid at least $25 million, used to funnel money through a bank in San Marino.

Jeffrey Brooks is involved with multiple stables, including Bulletproof Enterprises.

An attorney for Brooks declined to comment to newsday.com on any of the matters.

(with files from Newsday and harnessracing.com)

January 24, 2010 - 3:01 pmI think that you are missing

I think that you are missing the point. The point isnt whether or not Mr. David Brooks if found guilty of the crimes he is indicted for. The point is why Mr. David Brooks having been indicted transferred all of his horses to his brother's stable, Bulletproof. Having been charged and sent to jail, the Pennsylvania Racing Commission first recinded Perfect World (David Brooks racing stable) license in November or December 2006. That would have had the effect through reciprocity of making all of the David Brooks horses ineligble to race anywhere in North America. Therefore, there was a transfer of some 300 horses into the name of Bulletproof Enterprises, owned by one Jeffrey Brooks. Hidden Ownership? That is the basis upon which the racing commissions could take action. There does not have to be a finding of guilt on the charges Mr. David Brooks is facing in the US district court in NY, but it proves the motives of transfer. And now the latest revelations show some curious activities of Jeffrey Brooks as well. And, noteworthy, just recently a son of David Brooks has gotten his USTA license and has been transferred some 70 horses. Look at VAE Enterprises, Andrew Brooks. Are they preparing for the loss of the Jeffrey Brooks licenses and all the horses will be transferred to this new entity? Where is the ORC?

January 23, 2010 - 8:29 pmPLEASE PLEASE PLEASE stop

PLEASE PLEASE PLEASE stop these non sense comments. WEG has barred people under the "Private Property Act", without evidence or cause who later proved to be completely innocent. They had no recourse for Civil action to the courts. So why has WEG allowed Bulletproof Stables to enter their premises? If it was not so sickening it would be funny!!

January 21, 2010 - 5:28 pmLet me ask this then....why

Dan Lyndon SAID...

Let me ask this then....why hasn't WEG or the USTA taken action and stopped them from entering horses? You know why....They can't. Not yet. If they beat the charges, then what? WEG would have a huge Bullseye on it. Gina, you may be right, now the ORC may look into things. My point to the whole argument is people posted that WEG should do something. USTA should do something. If this were to turn out where the Brooks boys get off, you think horse racing has a black eye now, wait until someone sues these org's for millions of dollars for unlawfully restricting trade. I'm defending the decision by WEG, for waiting before they decide to restrict the Brooks family from racing. Smart move. Right move at this point. Once trial is over, then tehy will attack this the right way as usual but not before that.

January 21, 2010 - 4:04 pmCorrection for Mr. Lyndon.

Gina Hannah SAID...

Correction for Mr. Lyndon. You wrote "To date, they have not been charged so that means if the WEG were to not allow their horses to be dropped in the box, they are going to get a lawsuit slapped on them and they'll lose. Just because a paper writes an article doesn't mean these guys are going to get charged with these charges."
They indeed have been indicted - formally charged, ergo,denial of bail, straight to jail, no more house arrest pending the jury selection or trial process. The article written has confirmed on more than one occasion that they have been indicted/charged. If they hadn't they would not have put up any money for bail, and if the conditions hadn't been breached, it wouldn't have been revoked and it has which is why he is now in custody. In turn, if they are suspended by USTA the ORC has a reciprocal agreement, which means no racing or participating here.

Can anyone say "Conduct prejudicial and injurious to the best interest of harness racing"??. More tarnishing of an already damaged image for the Standardbred industry that honest people are left to defend. The dictionary is quite clear on the definitions "prejudicial" and "indictment". I would hope that the latest developments would be enough to initiate some sort of investigation and satisfactory outcome here in our Province. Have the horses they have purchased been with laundered or stolen money?? Has this money that has been stolen/laundered been used to enter their horses into our stakes races and for supplemental fees to major stakes races?? Has it been used to pay for stud fees of Ontario bred horses?? If I am not mistaken, were they not barred from purchasing any yearlings at some of the major sales last year for these exact reasons and allegations?? If they were brazen enough to defraud the US government, steal millions of dollars, why would anyone think that anything they did with racing was above board at any time? If so, then what..?? who is protecting our product and our best interests because we all saw hundreds of thousands of dollars go stateside...only to be sent to Europe... I shouldn't have to tell anyone where there is smoke there is fire.

To Ralph Sucee & Dave Gilders; you have made several very good points that need to be addressed and both of you hit the nail on the head on the issues you have raised.

As a footnote; as someone who counts on the use and protection of a bullet proof vest, so I can go home at the end of my day, I know only too well what the ramifications and clear outcome of a useless vest are. I only hope that there was no loss of life attributed to useless vests.

January 21, 2010 - 10:29 amnice comment ralph. finally

ALAN FAIR SAID...

nice comment ralph. finally someone saying what everyone else is scared too.

January 21, 2010 - 9:23 amBy the way, level playing

Dan Lyndon SAID...

By the way, level playing field???? How does that matter in this case? They have money, buy nice horses and win races....they're not like B. Robinson and getting positive tests over and over. They're issues are outside of racing. But you refer to a level playing field....if there are ten behind the gate, then it's a level playing field. If they didn't have the success they had this year, no one would be talking about this. Certainly not on Standardbred Canada posts. Only reason people are upset is because of their success in harness racing this year.

January 21, 2010 - 9:18 amThank you for making my

Dan Lyndon SAID...

Thank you for making my point. Fraud, Money Laundering, etc. is a criminal act but to this point, they have not been found guilty of anything. The WEG/ORC can not suspend them without solid evidence. "can be excluded from participating in harness racing for conduct detrimental to the sport."....not without cause they can't. Racing is still a business. We still live in a world where suspicion alone does not constitute a crime. He's requested 10 million to pay for his criminal defense attorneys. Do you know the type of attorneys you get for 10 million? This may go differently than everyone thinks. That being said, if they get off with a slap on the wrist, someone with that type of money behind them would go after the WEG, USTA or whoever for restricting their right to earn a living. Any restraint which destroys that ability to earn financial remuneration, either directly or indirectly is, by definition, a restraint of trade. Where that restriction is unreasonable, it is illegal.

Doctrine works as follows:

1. IS the activity is a form of trade? -in a sport which allows competitors to exploit their ability in the sport for financial gain and which allows that gain to be a direct consequence of participation in competition, a ban on competition is a restraint of trade.

2. Is one's ability to earn a livelihood from that trade is restricted? -Any restriction that destroys the ability to earn financial remuneration, either directly or indirectly, is a restraint on trade.

3. Is the restriction unreasonable?-What is reasonable is a matter of law. In other words, no one can know for certain until a court makes a ruling.

At the elite level, this sport of horse racing is now very lucrative and organizations imposing disciplinary sanctions which severely restrict a competitor's opportunities must ensure that such sanctions are reasonable and justifiable in the circumstances, or these sanctions may be challenged as an unreasonable restraint of trade.

January 21, 2010 - 2:49 amFraud would be a criminal

Ralph Sucee SAID...

Fraud would be a criminal act. Money laundering would be a criminal act. Disguising, hiding and maneuvering assets would be criminal behaviour. Providing useless bullet-proof vests to Marines would be horrifying. Subsequently naming a stable Bulletproof could be interpreted as scornful, contemptuous and omnipotent.

Not paying training bills could be grounds for ORC/SC suspension. Disguising ownership and conducting racing activity 'in the name of a dog' - or a brother - could be grounds for suspension. Transferring purse monies into someone else's account could be grounds for suspension.

'Bad behaviour' could be grounds for removal from WEG property. And one doesn't win lawsuits in Canada against 'private property rights'.

Lying, cheating, stealing, scamming, laughing and saying 'You can't get me. I'm bullet-proof!'. It's not about losing. It's about LOSERS. The Brooks Boys will have their date with Justice. 'Get tough' for sure. Good luck in the Courts.

We should be ashamed. We had/have the opportunity (responsibility) to investigate alleged criminal activity - did we do so? It all comes out in the wash. Thank God the British do their laundry.

January 20, 2010 - 6:12 pmI believe Mr. Lyndon is

I believe Mr. Lyndon is incorrect in his assertion that nothing can be done to Bulletproof Enterprises until they are caught doing something wrong. David Brooks, his family members, and others closely linked to the case can be excluded from participating in harness racing for conduct detrimental to the sport. In legalize, this is often referred to as a "moral turpitude" clause and is or should be a part of the by-laws of racing jurisdictions.

To say that a corporation or business owned by Brooks et al. cannot be touched is simply wrong. If Brooks and his family members are denied a license by the ORC and the USTA, then the horses under their ownership would not be allowed to race. The aforementioned jurisdictions would have to make certain under this scenario that Brooks did not set up a "shell company" in order to keep operating.

It is interesting to note that all major sports have dealt with the moral turpitude issue in the recent past. The other sports did not necessarily wait until the case was fully adjudicated before deciding to act. The question of Brooks being excluded from participating in harness racing requires skilled attorneys and cooperation between the ORC and USTA.

In closing, it is not whining to want a level playing field; and not being caught is not the same as having integrity.

January 20, 2010 - 5:56 pmWEG has suspended, barred,

DON JOHNSTON SAID...

WEG has suspended, barred, put trainers in retention and would not let people race by using their Private Property rule...Do you not remember all the trainers that were recently barred for one period of time or another? WEG suspended them all before they even had a chance to prove there innocence (which they were). Guilty or not it never mattered to WEG before so why should it make any difference now?

January 21, 2010 - 12:36 pmMr. Lyndon the regulator has

Mr. Lyndon the regulator has an obligation to all participants as well as the public to look into the matter. How exactly was the Bulletproof Enterprises set up? Where did the money originate to finance them? Was it the result of any illegal enterprise? How exactly do you allow all horses owned by one individual who is convicted of a crime and therefore suspended to be transfered to a new ownership in a day or two? What if any records are there for this transaction? Was it a legitimate and legal transaction or just on paper? These are absolutely some of the questions that need answers before they should be granted a license to race, need I remind you racing is not a right. There must be accountability and transparency involved. Let's hope the O.R.C. with their vast resources and large investigative unit are up to the task.

January 20, 2010 - 12:48 pmThis information is

j huber SAID...

This information is repulsive to the average owner who plays the game with honesty and integrity. If harness racing is to survive, we need to purge the sport of these type people.

January 20, 2010 - 11:42 amWhat exactly do you propose?

Dan Lyndon SAID...

What exactly do you propose? Don't just give a suggestion without a way to implement your big idea. First off, you can not prohibit someone or infringe on a business to keep themout of open competition without just cause. To date, they have not been charged so that means if the WEG were to not allow their horses to be dropped in the box, they are going to get a lawsuit slapped on them and they'll lose. Just because a paper writes an article doesn't mean these guys are going to get charged with these charges. ...By the way, Bill Robinson and this situation are comparing apples to oranges. Bill is gone because he was caught and fined/suspended numerous times on the same issue. They had rock solid evidence that allowed them to make a move. In this situation, WEG or any track, will have to wait to see the outcome. Then, they would probably be able to revoke their license renewal however, maybe not. They operate under a company name and to date, that "Company" has not been connected to any wrong doing so maybe there is nothign legally that can be done. You are incorrect when you say that they went from Perfect World to Bullettproof enterprises. As far as business is concerned, they are two different businesses with different assets. The business of Bullettproof Enterprises has done nothing wrong according to reports so until they do, no one can do anything to this.
On another note, stop playing the victim. "Our people are left fighting for second, third, fourth and fifth money after their 10-35 years in the horse business." -The most important word in there is "Business"....This is a business. Years of being in this business has nothing to do with anything. So because a trainer has been in business for 30 years, they should ban bullettproof horses from competition? Makes no sense to me. Reason these people are not competing is because they either can't compete in this business anymore or they weren't fit to engage in business to begin with. Either way, that's not the problem of Bullettproof Enterprises or any other owner that wants to compete. If you can't compete, then get out. That's business. Always has been. When you've won, have you ever felt bad about it? Think Bob Mcintosh felt bad about getting Artsplace from Gene Reigle when he turned 4? Think he was thinking about guys that have been in this game for 30 years. No way. He saqw an oppotunity to grow his business and took advantage of that.

To Bob, what sort of action did you want the ORC to take? Did they commit a crime of some kind in Canada? Not the Brooks, the business. The answer is no. They could make it so that their dog owns the stable and there is nothing anyone can do about it. Bottom line, if you don't like that they are racing against you, then do something about it. Get better horses, better owners, better trainers, better whatever. But stopped whining about others having success. Get tough or get out.

January 19, 2010 - 9:04 amC.Renon WEG and the ORC take

carlo renon SAID...

C.Renon WEG and the ORC take note are these people good for the sport? Should they have the privilage of racing here?

January 18, 2010 - 2:52 pmHey W.E.G & O.R.C. "Wake

Al Ferrusi SAID...

Hey W.E.G & O.R.C. "Wake Up"

Know I know how they went from "Perfect World" to "Bullet Proof" Enterprises with good old Canadian high purse money. These people are bringing all their horses to Woodbine and Mohawk. I don't even know if these people even know where these two tracks are, all they know is a lot of big high purse cheques are being sent to them every day. Our people are left fighting for second, third, fourth and fifth money after their 10-35 years in the horse business. Last but not least, I don't think Mr Bill Robinson is a little goldfish fillet. Thank You.

January 17, 2010 - 7:03 pmYou would think the O.R.C.

Bob McIntosh SAID...

You would think the O.R.C. might read this and take some sort of action!!!!

January 17, 2010 - 5:08 pmHey WEG, If you're serious

Hey WEG,

If you're serious about integrity issues,perhaps you should remove all horses affiliated with Bulletproof Enterprises from your circuit. Compared to this stuff, Bill Robinson is a little goldfish fillet.

Impeccable timing as well, it seems, for a sport in precipitous decline.


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